Restructuring and Related Activities

6 Months Ended

Jan. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

During the three months ended January 31, 2020, the Company determined it was more likely than not that certain assets, including certain trademarks, dealer network and production facilities utilized to manufacture and sell horse trailers with living quarters, would be sold before the end of their previously estimated useful lives and within the next twelve months. The Company also determined it was more likely than not that the assets associated with a production facility (one campus composed of multiple buildings totaling approximately 400,000 square feet) utilized to manufacture certain towable RVs would be sold before the end of the previously estimated useful lives and within the next twelve months. The RV models previously produced at this facility continue to be produced at other, existing Company facilities. Both groups of assets were concluded to have met the criteria to be classified as held for sale as of January 31, 2020.

During the quarter ended January 31, 2020, the Company performed impairment assessments over each group of assets, including the goodwill allocated to the asset groups, using Level 3 inputs defined by ASC 820 for those assets within each group measured at fair value and determined an impairment existed for certain assets within each group. The Company recognized an aggregate non-cash impairment charge of $10,057 related to these assets, including allocated goodwill, in the three months ended January 31, 2020. The amount of this aggregate impairment charge was based, in part, on estimated proceeds from the sales of these asset groups, which may differ from actual proceeds received when the respective sales transactions are finalized, which are expected to occur prior to July 31, 2020. The associated assets and liabilities expected to be sold are presented as held for sale on the January 31, 2020 Condensed Consolidated Balance Sheet.

The major classes of these held-for-sale assets and liabilities, which are part of the North American Towables reportable segment, are as follows:


	January 31, 2020
ASSETS
Accounts receivable	$	915
Inventory	2,959
Property, plant and equipment	6,772
Other assets	34
Total assets held for sale	$	10,680


	January 31, 2020
LIABILITIES
Accrued product warranties	$	556
Other accrued liabilities	131
Total liabilities held for sale	$	687

The total liabilities held for sale of $687 are included in Other current liabilities on the Condensed Consolidated Balance Sheet.